Need to Know
- Macy’s is rolling out a revamped loyalty rewards program in the hopes of building its customer base and to increase the spending of its existing customers.
- The program, dubbed Loyalty 3.0, allows customers to earn rewards on their purchases and is an extension of the retailer’s existing Star Rewards program.
- Customers with a Macy’s credit card are automatically enrolled in the program based on their annual spending, those without Macy’s cards are able to enroll through the Macy’s mobile app.
- The updated rewards program now operates on a tiered system; bronze, silver, gold, and platinum. All members will receive Bronze perks, as the cardholders’ annual spend increase so does the rewards level. Platinum tops out with 5% back on all purchases as well as free shipping and is available to cardholders spending $1,200 or more annually.
- Macy’s Star Rewards program currently has nearly 30 million members.
Macy’s revamped its customer loyalty program in an effort to keep its customers engaged, inspired, and coming back. The loyalty refresh comes just a few days after the retailer announced a new strategy to better position the company for growth, which included closing 125 stores over the next three years and an accelerated digital growth program.
The program revamp, coined Loyalty 3.0, is a tiered system that allows all customers to earn rewards. Customers with Macy’s Cards earn faster and have access to greater perks like free shipping and up to 5% back in rewards. Since the launch of Macy’s Star Rewards program, Macy’s has seen its member base growing.
“With nearly 30 million members and growing, Macy’s Star Rewards program has been a huge hit,” said Rich Lennox, Macy’s CCO in a release. “We hugged our best customers with the relaunch in October 2017 and then expanded it in 2018 to all customers. We have seen strong results and received positive customer feedback. With this next phase of the program, all customers will earn rewards on everything they buy (except gift cards, services, and fees) and can redeem on anything they choose. In the simplest terms, it’s how we love our customers back.”
The rewards program will be controlled entirely through Macy’s mobile app and its online stores making good use of its newly announced tech hub opening in the Atlanta area.
“Macys.com contributes to overall operating profit, and the company will continue to invest in its websites and mobile apps to deliver a superior fashion experience, accelerate growth and further strengthen profitability,” the company said in a press release.
Loyalty programs are proving to be an essential part of customer offerings in today’s highly competitive retail market. Macy’s found that more engaged customers, like those using rewards programs, tend to spend more and shop more frequently.
Studies show that 69% of consumers say the choice of retailer is influenced by where they can earn customer loyalty/rewards program points. With over 30 million members in its rewards program, Macy’s appealing new rewards program gives the retailer a strong foundation for the customer expansion it needs.
Macy’s is betting big on this new updated version of the mobile loyalty program to keep customers engaged throughout the refresh of the brand.